National Presto Industries Inc (NPK)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 35,033 | 22,421 | 25,851 | 28,460 | 22,127 | 24,565 | 18,702 | 22,173 | 30,029 | 44,060 | 53,877 | 57,876 | 56,196 | 53,501 | 47,686 | 40,994 | 37,779 | 38,603 | 36,808 | 40,569 |
| Total assets | US$ in thousands | 440,536 | 415,969 | 401,805 | 395,879 | 411,847 | 407,443 | 393,982 | 388,514 | 420,398 | 425,909 | 406,535 | 395,231 | 433,170 | 410,678 | 406,320 | 383,659 | 410,253 | 404,272 | 384,558 | 376,541 |
| Operating ROA | 7.95% | 5.39% | 6.43% | 7.19% | 5.37% | 6.03% | 4.75% | 5.71% | 7.14% | 10.34% | 13.25% | 14.64% | 12.97% | 13.03% | 11.74% | 10.69% | 9.21% | 9.55% | 9.57% | 10.77% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $35,033K ÷ $440,536K
= 7.95%
Operating return on assets (ROA) is a key financial metric that measures a company's efficiency in generating operating profits relative to its total assets. National Presto Industries Inc's operating ROA has varied over the past several quarters.
The trend in National Presto Industries Inc's operating ROA indicates some fluctuations, with the metric ranging from as low as 4.75% to as high as 14.64% over the periods analyzed. The company's operating ROA was highest in the second and third quarters of 2021, surpassing double digits at 13.25% and 14.64%, respectively. This suggests that during these periods, National Presto Industries Inc was effective in utilizing its assets to generate operating income.
However, there was a gradual decline in operating ROA starting from the fourth quarter of 2021, with the metric falling below 10% in the subsequent quarters. The most recent figure of 7.95% for December 2023 indicates a decrease compared to the peak observed in 2021.
Overall, while National Presto Industries Inc has shown variability in its operating ROA, it is essential for the company to monitor and potentially improve this metric to ensure efficient utilization of its assets and sustain profitability in the long term.
Peer comparison
Dec 31, 2023